Communication in Business

Qantas:

An analysis of the company’s social performance in regards to the

environment and working conditions

Introduction

The core purpose of Qantas Group is the passage of travellers using two
harmonious airline brands – Qantas and JetStar (Qantas, n.d.). Qantas is mostly
known for its flight services, but it also provides other services like catering, holiday,
travel, cargo, ground handling, logistic, baggage and interstate trucking services for
local and external air cargo industry. Qantas is among one of the first airline firms to
introduce a frequent flyer programme, which aims at rewarding frequent and loyal
flyers. Additionally, small and mediums enterprises(SMEs) are given courier services
by the company (Airlines 2018). Like any normal firm, Qantas has gone through
much ups and downs to reach what it is today. Being Australia's biggest airline and
the second oldest in the globe which gives it years of services experience in this
sector, Qantas enjoys strong backing of the Australian government. The main
competitive advantage of the company is that it has a significant brand value and a
monopoly in Australia, which explains why it possesses a majority share of
Australian domestic market. In order to be successful, Businesses have to cater for
the society nowadays; Corporate Social Responsibility is all about caring for a better
society.

Case for environmental issues

Time and time again, Qantas has proved that it caters for the environment; it has
created a flagship program called ‘Qantas Future Planet’ for environmental, social
and sustainability initiatives. Caring for the environment is only the company’s
personal interest in the modern world, in fact to have a win-win situation, it can serve
as a USP to get more clients who are environmentally aware. Furthermore, Qantas
is devoted to growing as a pioneer in sustainability for both aviation industry and
corporate world (Qantas, n.d.). An environmentally friendly business helps to reduce
its activities’ effect on the environment and also protects it. In 2016, Qantas installed
energy-efficient LED lights in all working areas as part of a new approach to reduce
carbon emissions launched on World Environment Day. Australian Warehouses,
ramp area, hangars, airports and flight stimulators use these lights and have reduced
the consumption of energy by more than 13 million kilowatt hours, which represents
a whopping amount of $2 million annually (Qantas introduces new measures 2015).

Qantas has set up fuel efficiency programmes which help them meet their
environmental objectives. An improvement of 5% overall for fuel efficiency since
2009 has been recorded, which is below the goal of an average 1.5% yearly. During

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the financial year 2014/15 of Qantas, the company has sped up a prevailing fuel
efficiency and optimisation strategy that enabled the reduction of carbon emissions
by 2.1%. Qantas and Jetstar were among the initial airlines introducing a voluntary
carbon offsetting agenda in 2009, compared to the professionalism of most air
services with similar programmes, has witnessed a positive take-up. Customers
hence preferred these companies over others which explains the contribution of
A$1.2 million in 2014 towards the buying of verified carbon setoffs (Acceleration of
fuel efficiency 2015).

No firm is perfect, Qantas also had made unethical decisions. Nevertheless, it has
tried its best to correct what has been done. In 2017, Andrew David, the domestic
chief executive of Qantas held a meeting with the representatives of the industry and
publicly apologised for an accident which produced 22,000 litres of toxic firefighting
foam to spread after a failure of a particular process (Qantas considers
compensation to 2017). Being very concerned by the harm caused to the
environment and all stakeholders, Qantas even reimbursed commercial fishermen
whose business were affected. More, even other measures to have a safe water
there.

On top of that, Qantas has proudly announced that it will use biofuel powered
aircrafts from 2020, more precisely its aircrafts from Los Angeles. Qantas has
announced that it will make the use of renewable jet fuel supplied by a Philadelphian
company for flights from Australia to LA. Mr Gareth Evans, International and Freight
chief executive of Qantas stated that the company was aiming to diminish carbon
release and also new strategies to becoming more fuel efficient, reason why the
decision to opt for renewable fuel each year was made. Mr Evans said that there is a
research going on for renewable jet fuel opportunities in Australia and they are
planning to emerge locally produced biofuels for aviation use (Hepworth 2017).

Cases against working conditions

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Working conditions are pivotal for the modern employees, a basic pay is not enough.
Working conditions forms part of a range of topics and issues, from hours of work to
remuneration. It also includes the physical capability as well as the mental capacity
of the workforce. In the airline industry, there is no production line as such, the only
important asset they possess is workforce. All depend on how they work as a team.
To be able to be effective and productive, managers really have to motivate
employees, it is not only about how they work, for instance, airhostesses should
have a certain mindset and constant happy face (Boyd 2001).

According to Australian Transport Workers’ Union (TWU) official Klaus Pinkas,

countless bad decisions were taken by the management between the period of
2011-2015, many of these decisions directly and indirectly impacted its workforce.
Many employees of Qantas say that the company does not really value its workers.
One of the testimonials say that he is indeed proud to be an employee at Qantas for
more than 14 years, he says that he is proud to be a part of that family.
Nevertheless, he mentions that the company does not realise the worth of its
workforce. He also argues that Qantas does not look like it has a long-term goal, as
it is always trimming jobs and routes and only promotes frequent flyer programmes.
The employees clearly do not feel safe about their job conditions, they fear their
being sacked by the top authorities. Moreover, the AGM of Qantas introduced an
unusual act of employer which has made share prices fall by 42%. Consequently,
Qantas has declared that it has made a deal with Emirates, which will make the
airline cut its routes, scrap new fuel-efficient planes and carry on outsourcing
aviation jobs (Future of Qantas threatened 2012).

In 2014, there was a news which made Qantas employees have a second thought
about their job security. Qantas announced that it had made a $252 million loss and
will consequently dismiss 5000 jobs over the upcoming three years which includes
non-operational and management roles and many employees in maintenance. Mr
Joyce, CEO of Qantas said that the performance by the airline was not acceptable
and that the ongoing circumstances were not sustainable. Even though the company
was going through such a situation, which forms part of the business life, workers

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should not be penalised. The airline was clearly not successful in providing guidance
in such a competition, world economic conditions, fuel tariffs and exchange rates
(Creedy 2014).

In 2015, Qantas made a prodigious profit, from losses of $2.8 billion to $560 million
profit (Qantas workers speak out 2015). Many stakeholders argued that undoubtedly
Qantas might be profiting, but the staff are receiving nothing in return for their hard
work to make the company profitable again. Those at the top will indeed pocket
millions, but Tony Sheldon asks what about the normal employees. A survey
published by ‘newmatilda.com’ in 2015 showed the status of aviation employees.
These employees are in need of money; they need a full-time employment. Since
2015, Qantas has dismissed 5000 full-time employees and replaced them with 9000
part-time employees and these employees work for Qantas’ subcompanies, for
example Qantas Ground Services (QGS).  If ccompanies are not able to share the
profit generated by employees then it is time for more severe government protocols
which will guaranteee employee rights. At the end of the day, it does not motivate
employees, it is not a proper working condition, the industry itself will not progress
sustainably if it will not have a well prepared, active workforce (Sheldon 2015).

Conclusion

Aviation industry is very pivotal to a country’s economic activity. The air travel
industry has a great hand in the term globalisation, it has helped to connect business
partners furthermore on an international platform. Qantas is one of the pillars of
Australia’s economy, the social factors affecting it should be given much
consideration, be it environmentally or in terms of working condition. Qantas has
gone through thin and thick lately, especially in the 20s, it should definitely value and
cater for its employees who work day and night to make the business work, it should
provide them with proper humanely working conditions, they should be compensated
for their dedication. Qantas has devoted a part of its objectives to the environment, it
is a very good approach financially and personally for the firm. Yet, Qantas has
created certain problem such as spills and others. It should make sure that
everything is well set in the firm. To be able to remain in business, in the competitive

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world of airlines, Qantas should make its best to cater about all factors affecting its
activity.

List of References:

Airlines: Company overview of Qantas Airways Limited. 2018. Bloomberg.

https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=
874341

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Acceleration of fuel efficiency programme helps Qantas make up ground on
environmental target. 2015. Green air Online.
http://www.greenaironline.com/news.php?viewStory=2134

Boyd, Carol. 2001. “HRM in the airline industry: Strategies and

outcomes.” Personnel Review 30(4), 438-453. https://search-proquest
com.dbgw.lis.curtin.edu.au/docview/214812725?accountid=10382

Creedy, Steve. 2014. “Qantas to slash 5000 jobs as it posts $252m first half loss”.
The Australian. https://www.theaustralian.com.au/business/aviation/qantas-to
slash-5000-jobs-as-it-posts-252m-first-half-loss/news

Future of Qantas threatened by bad management, TWU members take Australia’s

message to Qantas AGM. 2012. TWU.
http://www.twu.com.au/home/media/future-of-qantas-threatened-by-bad
management,-twu/

Hepworth, Annabel. 2017. “Qantas to fly to Los Angeles using biofuel”. The
Australian. https://www.theaustralian.com.au/business/aviation/qantas-to-fly-
transpacific out-of-los-angeles-using-biofuel/news
story/5eaedc8035e50fd0412ba8e8bdb783d8

Qantas. n.d. “Environment.” Accessed on April 10, 2018.

https://www.qantas.com/travel/airlines/environment/global/en

Qantas introduces new measures as part of efforts to reduce carbon emissions.

2015. Australian Aviation. http://australianaviation.com.au/2015/06/qantas
introduces-new-measures-as-part-of-efforts-to-reduce-carbon-emissions/
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Qantas considers compensation to fishers after toxic spill, food risk still unknown.
2017. ABC. http://www.abc.net.au/news/2017-04-22/qantas-responsibility
chemical-spill-seafood-contamination/8464142

story/9e9d76303faef5310141a79ca4f30785?sv=f513dd616433422b315635d
d751efd5

Qantas workers speak out about declining pay and poor working conditions. 2015.
Audioboom. http://www.abc.net.au/radio/programs/pm/qantas-workers-speak
out-about-declining-pay-and/6881162

Sheldon, Tony. 2015. “Qantas Might Be Profiting, But Its Staff Are Barely
Getting By”. newmatilda.com. https://newmatilda.com/2015/10/23/qantas-
might be-profiting-but-its-staff-are-barely-getting-by/

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